Supreme Court of India · 2020-07-29
SHREE CHOUDHARY TRANSPORT CO. vs INCOME TAX OFFICER
- Citation / case number
- SC 2009/21632
- Court
- Supreme Court of India
- Petitioner
- SHREE CHOUDHARY TRANSPORT CO.
- Respondent
- INCOME TAX OFFICER
- Author
- HON'BLE MR. JUSTICE DINESH MAHESHWARI
- Bench
- HON'BLE MR. JUSTICE A.M. KHANWILKAR, HON'BLE MR. JUSTICE DINESH MAHESHWARI, HON'BLE MR. JUSTICE SANJIV KHANNA
Judgment text excerpt
The Supreme Court upheld the High Court's decision regarding the disallowance of Rs. 57,11,625/- under Section 40(a)(ia) of the Income Tax Act, 1961, due to the appellant's failure to deduct tax at source on payments made to transport operators. The Court clarified that the obligation to deduct TDS arises when payments exceed Rs. 20,000/-, and the appellant's argument that the transport operators were not sub-contractors was insufficient to negate this obligation. The appeal was dismissed, affirming the assessment order for the assessment year 2005-2006.